Many people even celebrities succumb to major illnesses such as cancer even at a very young age. In this time where stresses and fast food have abound, the chances of having a cancer may get as high as 1 in every 2 persons or 50% chance of getting one.
For the lucky ones who have thought of protecting themselves before they get a major illness, receiving a large insurance claim say P5M after being diagnosed with cancer is a big blessing in disguise. But for those who didn't have get any insurance and get diagnosed by a major illness, it becomes a source of frustration and regret.
When I was a new financial advisor, I approached my father and told him to get life insurance. Unfortunately, he did not listen to me. After several requests, I decided to give up. In March of 2015, my father got into a terrible accident that resulted into stroke. We spent almost P1.5M for the hospital, doctors and rehabilitation. If only my father followed my advice just like my mother, he could have received as much as P5M.
In the past, insuring people with major illnesses such as cancer and stroke was not possible. The only way for them to be insured is through a single premium VUL which works much more like a mutual fund. The only drawback with this is that the insurance is only 125% of investment which is quite small.
Just recently Insular Life launched a new life insurance program that guarantees a person to be insured regardless of health condition. For a limited time offer, you can now insure yourself even if you were previously uninsurable.
To know more about this product from Insular Life, request for a proposal by clicking here or calling 0905-FINANCE (0905-3462623) or (02) 750-4946.
A common question that most people ask is "Where do I invest my Christmas Bonus this year?".
You see, Christmas is in the air and of course Christmas Bonuses and Thirteenth Month Pays are coming. What better way to save your Christmas Bonus and grow it than by investing in the international stock market, right? This is the best way to spend your Christmas Bonus.
For only P5,000 per month for at least 5 or 10 years, you could already invest in the international stock market and be a business owner of the following companies:
Why invest in the bank when you will only earn less than 1% per year? Why invest in the local stock market, when you can also invest internationally? Here is the composition of where the fund invests:
Your money will be secured since the company who will manage your fund is no other than Insular Life. Insular Life is one of the largest life insurance companies in the Philippines. So what are you waiting for? Click here to request for a proposal about Insular Life's Global Equity Fund. or call us at 02-750-4946 or 0905-FINANCE (0905-3462623).
Today, I woke up with a feeling of excitement. This day will be the first time I will be delivering my a death claim check. As a financial advisor these are the once in a blue moon events where you feel the joy and satisfaction of being a financial advisor.
HOW IT ALL HAPPENED:
Around 5 years ago, I was referred to a businesswoman in her early 50s. She owns a business in the construction industry. Initially our financial planning consultations were mostly about her own personal affairs. Eventually as the years pass, and as our relationships deepen, our consultations went further into financial consultations for her business - specifically for employee loyalty and retention.
We were able to craft a financial plan that would allow her to attract better quality employees as well as retain them by creating great compensation packages and employee benefits. One of these was a comprehensive group plan or a CGP. Never did I know that the plan I suggested would allow me to feel what I have experienced today.
CPG or comprehensive group plan is a retirement program which allows companies to prepare for the eventual retirement of their employees by setting aside a small portion of their earnings in a BIR tax qualified deposit system that earns guaranteed interest several times higher than the bank. Further amounts invested here may be assigned to another employee should they resign early on.
A few days ago, I received a call from my client's secretary asking help in claiming death benefits. My heart raced as I thought, is my long-time client is already dead? Oh no! But it was not my client that needed help, it was one of her employees.
As I gave the widow her benefit check, I reminded her that this check is a gift of love from her husband. “Your husband could have named his parents as beneficiaries but he named you because he cares for you and your children.”
Tears then swelled from her eyes. I hear her whispering “it was not supposed to happen this way. It was so sudden, he was so young.” Man as I am, I did not know that my eyes were already sweating as I was listen to her stories.
I gave her a hug and said, “This check may not ease your emotional burdens but at least this can ease the financial stress that you are feeling right now, everything will be all right.”
As I left the office of my client today, I recounted the lessons I learned from my first death claim. And here are the top 5 lessons I learned:
1. Life Insurance is most appreciated when someone dies
Before the widow and I parted ways, I may have heard more than 10 repetitions of the words, thank you. She even said that she will never forget the company where her husband worked and Insular Life. These are the times when you feel an all-time high. When you feel that you are close to being the national hero of the Philippines. I had to taste and feel this moment. Often, our job as a financial advisor are filled with No’s and rejections. But today is different.
2. No matter how young you are, you still need to be protected from Life’s risks
His husband was only 45 years old. He never showed any signs of sickness at all before he suddenly dropped dead due to a stroke while driving his boss’ company car. Death knows no age and no time. Anyone who feels invincible should know that the mortality rate is still at 100%.
3. Having a good relationship with your financial advisor can make your life easier
Imagine if my client did not have any trusted financial advisor who took care of her. Or she did not select the right financial advisor who can service her needs in the long run. The claims process could have been very long and tedious for them. When I learned about the incident, I sent my staff to get the necessary claim documents immediately from my client. In fact, the client or the beneficiary didn't need to visit our office to process the claims. Me and my staff handled it well. In fact, I was the one who delivered the claims to them in their office. This is because I valued my client and they valued me. So, I am very willing to give extra mile service at no additional cost on their part.
4. The best way to treat a life insurance benefit claim is to reinvest 80% of it back for your future.
During my short conversation with the widow, I realized that she works as a store attendant of fast food store. She also mentioned she had 3 kids and one is in senior high, about to go to college. I realized that if I advised my high net worth client to be financially healthy, I should also advise her to be financially healthy as well. So, I told her to reinvest 80% back in the form of managed funds. I told her that this money is a memory of the hard work from your husband and must be used for you and your children’s future. She went silent for a bit, probably thinking and thankfully she said yes.
5. Never share to your friends and relatives that you have received a life insurance benefit check unless you plan to reinvest it.
During our conversation, I told her to not tell anyone that she received a benefit check if she does not plan to reinvest it. I explained to her the risks of exposing it to people even to closest friends and family members. She must not even show a hint of a large spike in her lifestyle, lest others will notice and wonder. Good thing she decided to reinvest the check so she need not worry.
Being a financial advisor is one of the toughest jobs in the world. As they say, we eat rejections during breakfast, lunch and dinner. But as I reminisce today’s events, I realized that all the years of melancholy brought by this job is then quickly erased by the sight of a widow hugging you. Visualize for a second a widow crying tears of joy. For one moment you feel sad, but suddenly you realize... events like these make our lives worth living for.
I was one of your attendees during your Income Tax 101 Seminar held in Makati and I thank you for your advocacy to help small time businessmen like us by providing affordable seminars. I admire your team's dedication to your advocacy of erradicating poverty in the Philippines through financial literacy.
During the introduction part, I heard that Mr. Mark Fernandez was invited by the Senate to discuss about Estate Taxes. He also gave his opinion saying that the proposed tax changes may increase wealth inequality and may create more poor people. I would like to clarify this.
So my question is, will the proposed tax changes by the Duterte administration reduce the poverty gap? Or will it create more poor people? I am just confused because the news and the media says that the proposed tax changes will be good for the Filipino people.
Thank you and more power. I hope to attend more of your seminars.
Thank you for your patronage to our seminars and for your encouraging words. Rest assured that we will continue to spread our advocacy to more Filipinos in need. My answer to this question is merely an opinion based on how I see the proposed tax changes. Others may disagree but here is my humble opinion:
First, let us identify what are the proposed tax changes:
1. Plan to reduce personal income tax (taxes paid on money that individuals and sole proprietors earn.)
2. Increase excise taxes (taxes paid on some items that we buy)
3. Reduce estate tax (taxes paid upon death)
With the proposed changes the minimum amount of income per year needed for you to be taxed will now be increased to P150,000 per year or P250,000 per year. This is would be good since this means lesser taxes to be paid and more take home pay.
However, this will be bad for the minimum wage earners because they themselves will not be benefiting since they are exempt from paying taxes. Thus the proposed reduction in income tax will benefit the upper and middle class but not the lower class.
Second, let's look at the proposed excise tax increase on - automobile, sugar, fuel and LPG. This would mean more expensive cars, higher transpo cost, more expensive food and beverages with sugar and other ripple effects due to higher oil prices. Thus the proposed increase in excise tax will not benefit the upper, middle and lower class.
Now, let's look at the proposed reduction in Estate Tax. This means that amount of taxes that the heirs will pay from the inheritance they receive will be reduce from 20% to 6%. The proposed reduction in Estate Tax will greatly benefit the upper class.
So in summary, the proposed tax changes will benefit the following:
Upper class - Will benefit from lower Estate Tax and Income Tax but will pay more Excise Tax
Middle class - Will benefit from lower Income Tax but will pay more Excise Tax
Lower class - Will not benefit at all from the proposed tax changes. No benefit due to lower Estate Tax, lower Income Tax and higher Estate Tax
If you belong to the upper class, then the proposed tax changes will be good for you. Your heirs will be paying lesser Estate Taxes from 20% to 6% on the inheritance they receive.
Minimal to no effect for the middle class because despite the reduction in income tax, the prices of commodities will be expensive due to excise tax.
The hardest that will be hit are the minimum wage earners. They will not benefit from a reduced income tax, a reduced estate tax and will be paying more for prices of commodities and transportation.
Hopefully this sheds some light to your question. This is just my humble opinion, I'm sure the Department of Finance, our honorable senators and congressmen have their own reasons why. Feel free to comment below and let me know your thoughts too.
Mark Joseph T. Fernandez, CPA, RFC, AFA, AWP, AEP
Founder of FinancePH
I have been following your Facebook page for more than a year now. Recently, I attended one of your seminars and I was very happy to have attended. I also seemed to enjoy what the financial advisors are doing - conducting seminars, discussing about investments, helping people be more financially healthy and doing one on one financial coaching. Currently I am employed and is earning around P25,000 per month. But I feel that I have stagnated and I want to earn more because I believe I am very hard working and I even spend overtime regularly. Unfortunately, some of it are without pay. Also, I feel that my job is not anymore challenging. I want to do something new and grow.
My question is, how much do financial advisors earn and do you think a person like me with little financial background can also become a successful financial advisor?
Thanks for answering my question and more power to FinancePH.
Your avid FB follower"
Thank you for reaching out to us to clarify about this issue. With regards to your question as to how much financial advisors earn, there seems to be no definite answer. In the Philippines, financial advisors earn commisions and variable income. They do not earn a fixed income. This is different from financial advisors in developed countries where they charge a specific consultancy fee or management fee to their clients. Unfortunately in the Philippines, that set up may not happen in the near future.
I started my career as a financial advisor when I was age 21 right after college. I first started as a part-time advisor while working as a CPA in one of the big accounting firms in Makati. Usually meet my clients after work or during Saturdays. At that time I was earning an average of P15,000 to P20,000 per month from my sales.
As the years progressed, I started to become less shy and started to be more confident of my job. Eventually I started to earn P35,000 to P50,000 per month. The key here is to take care of your existing clients and continually serve them so you will have repeat business.
Globally there is an international organization called the Million Dollar Round Table or MDRT which is one of the best honors that a financial advisor can achieve. Unlike certification courses such as the Registered Financial Planner (RFP) or the Certified Wealth Planner (CWP) where you study and take an exam to be certified, the MDRT designation can only be achieved if you reach certain level of income every year. This means that you can be an MDRT this year and next year you are not.
The income requirements to be part of this organization can be found at the website of MDRT at https://www.mdrt.org/membership/requirements/. Currently the income requirement for 2017 to be part of MDRT is at Php 2,094,300. Which means that if you earn at least Php 2,094,300 you are eligible to apply as member of MDRT. This amount changes every year to adjust for inflation.
Reaching the MDRT status as a financial advisor is one of the greatest dreams for most financial advisors. This translates to not only income but several company rewards, fame and free travel incentives. Because of my job as a financial advisor I normally travel out of the country at least twice a year and most of them are for free. But don't think that this is easy to achieve. MDRT financial advisors represent only 5% of the total financial advisors all over the world. Most MDRT financial advisors take time to build up their skills, confidence and client base to be able to achieve an MDRT status.
As to your second question if you need to have financial background to be a financial advisor, the answer is no. In fact some of the top financial advisors that I know have not take any finance classes when they were in college. The key there is to attend regular training and have a mentor who is also an MDRT.
If ever you wish to know more about the career please visit www.beafinancephadvisor.com. If you are not yet decided and wish to attend an orientation to know more details kindly visit www.beafinancephadvisor.com/orientation.
Hopefully I answered all your questions.
Mark Joseph T. Fernandez, CPA, RFC, AFA, AWP, AEP, MDRT
President of FinancePH
Looking for tips on how to save transportation expenses? Here are some of our helpful ideas that can guide you to lessen your daily transportation expenses.
When it comes to personal finance, we are all looking for ways to save more money. Our daily budgets are filled with both big and small expenses that we imagine can be cut out to save us extra cash and in the very least, can be spent elsewhere to more important things. Here are some tips to save your wallet from transportation expenses:
One of the things you can highly consider most especially if you are travelling quite a distance is using public transportation. But if you will choose to ride a Public transportation vehicle, the first thing that you have to do is to plan your route and know what PUV is the most appropriate to use. Why? To avoid spending more on PUV fares of course, and to avoid getting lost. Getting lost means spending more money, and we don’t want that now, do we? So you really have to plan which public transportation vehicles will help you cost you less but will take you exactly to where you want to go.
The case is a little different when it comes to PNR. The PNR fare is ranging from 15 pesos to 60 pesos. It’s a bit expensive than the LRT and MRT because it runs and covers more distance than the two technologically advanced railways. It has stations from tutuban up to Calamba, Laguna. PNR is a big help because it is cheaper than riding several jeepneys which is completely hustle and very time consuming.
Author: Christian Leika Paug
Many people invest in stocks but end up losing money because they don't study first. Nowadays, in what we so-called as the Technology or Information Age, people are slowly gaining the awareness about the value and benefits of stock investing. This is true to the fact that investors aged 18 to 44 comprised the bulk or 73.9% of online stock account users. Quoted from the Business Word University Edition November 5-18, 2015, Mr. Hans Sicat, PSE President and CEO, said that “The growth in online accounts continues to be impressive and validates our strategy of expanding the retail investor base through this platform.” He added, “Online accounts now compromise 27% of total stock market accounts from a mere 6% share in 2009.”
Worth noting indeed. However, despite the high returns one can get in stock investing, there is this big CAVEAT or warning also given the risks of losing, the fluctuations, the bearish periods, the heresies or hypes that can make your heart palpitate and your head go nuts. But do not fret for these things can be minimized if not totally avoided and here are some tips that you may consider:
1. Know Your Investment Goals/Objectives
It is important that one knows what his/her investment objectives are. These should be assessed carefully because it can help in the determination of what particular type of asset or fund would suit your reasons. Some of which may be any of the following:
a) Capital Preservation – This is considered as the conservative approach towards investing since the aim is to avoid risk of loss with the hope of gaining yields overtime;
b) Capital Appreciation – As the term implies, this objective deals with the accumulation or growth of capital. This may enable one to gain higher returns but note that there are higher risks too. The same goes with the investment adage, “the higher the risk, the higher is the return.”
c) Dividend Accumulation – The goal is to gain earnings through dividend declarations from companies or other business organizations, and
d) Current Income – This mode is to seek for the fastest yields to one’s investment. Said returns may not be extremely high but are just adequate to cover up for one’s regular expenses.
2. Research about the Stock Market
Of course, as any other important reminder, know what you are getting yourself into. From the Frequently Asked Question (FAQs) of Philippine Stock Exchange (PSE) Academy, stocks are shares of ownership in a company. When you buy stocks of a publicly listed company, you become part owner of that company. As a part owner, you participate in the company’s growth and future profits. Conversely, you may also lose if the company suffers a loss or performs below market expectations. Now what is a stock market? The stock market is a place where stocks are bought and sold or a place where people can invest in publicly listed companies through the Philippine Stock Exchange, Inc.
3. Determine Your Risk Appetite/Profile
Basically, one has to evaluate his/her levels of tolerance for losses. As what financial consultant and stock market trader, Mr. Marvin Germo, said “Your investment strategy should reflect on the stock you are buying.” He further explained that there are volatile stocks that have the great potential to go higher but also have the possibility to go down significantly. There are also stocks that are steadily growing while the market is going up and gets down steadily as the market turns otherwise. In order for one to identify his/her risk profile, he or she should attend trainings or seminars about stock trading. Another option is to watch training videos or read books to gain insightful knowledge and strategies.
4. Allocate Investible Funds in Stock Investing
In a nutshell, one must only invest funds that he or she can afford to lose in the stock market. Never go with your daily operational or living funds, or even pension funds in stock investing because the risk of losing is very real. Though losses in the stock market are considered “paper losses”, others can’t help but feel worried, especially for most newbies, since the funds they poured into the stock market are at times hard-earned money which can be used for other purposes. In addition, make sure that you have emergency funds and savings because there are no guarantees that there will be returns all the time.
5. Devote time for Stock Investing
They said that investing in stocks is much like going to school or a college course wherein the funds that you placed are your tuition fees for learning. In order for one to be successful in stock market or in schooling, he or she should commit time to study and be more aware of the mechanics of the market. Allocating time in stock investing does not necessarily mean that you have to watch how the market goes every minute in a trading day but you can set your own time in monitoring. The same can be done on a daily, weekly, monthly, quarterly basis, or whatever mode you are most convenient with. One can even align his/her monitoring time with his/her preferred strategy, be it long term (buy-and-forget), regular (peso-cost averaging) or short term (daily trading).
Truly, investing in the stock market is yet another means for building wealth. It is in one way or another that it can also alleviate poverty among our Filipino Kababayans given the proper knowledge and training. Noting that fear or ignorance immobilizes success, let us be informed, be engaged, and begin investing in the stock market. Cheers to investing!
Insular Life's brand endorser, Ms Lea Salonga has always believed that planning early in life can go a long way in helping you reach the bright future you want in life.
Today, we will discuss to you one of Insular Life's best selling investment products available in the market today - The Wealth Secure Investment.
Wealth Secure is a 3 in 1 investment program that provides the following:
1. Investment - the amount after 5 years of contribution can be withdrawn partially or fully
2. Life Insurance - the beneficiaries can receive a death benefit plus the unwithdrawn investment of the client
3. Health Insurance - the client can receive up to P5M lump sum should the client be diagnosed of any of the 35 dreaded diseases (ex. cancer, heart attack, stroke, kidney failure and major organ transplant).
FREQUENTLY ASKED QUESTIONS:
So much do you need to invest to receive the benefits above?
Simply invest at least Php 2,000 per month for at least 5 years or 10 years and you can receive the benefits above. You can invest also quarterly, semi-annual or annually.
How to start investing?
Simply contact us so we can schedule a meet with you. To contact us please contact an Insular Life Financial Advisor by clicking here. Or you may text us at 0905-FINANCE or 0905-3462623 for more information.
Why should you trust in Insular Life?
Insular Life is the largest insurance company in the Philippines in terms of Net Assets/Net Worth. To know more about Insular Life's standing versus other Insurance companies please visit www.financeph.com/blog/top-largest-life-insurance-companies-in-the-philippines-for-2016
How much is the expected return on investment?
It depends on the type of investment you choose from. You can choose from 5 different types of investment each with different expected returns and risks. The returns can range from 4%-25% per year on an average it is around 8-12% average return.
Contact us and we would be love to schedule a meeting with you and discuss your investment options.
To contact us please click here. Or you may text us at 0905-FINANCE or 0905-3462623 for more information.
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Investing gives us more than we could analyze, not just by receiving the fruits of our investment but also the non-financial benefits and values that makes us greater individuals for ourselves and our community.
Just like investing, there are several valuable lessons that we can learn over the course of our lives. Have you ever asked the following questions:
Why do we need to go to school when the things that we need to learn are in the internet?
In my opinion, we go to school not just only to learn and obtain knowledge but also to learn the value of perseverance. Each day is filled with challenges, home works, projects and extracurricular activities that at times can be hard to handle. But by waking up each day, we are in effect saying to ourselves that someday, all the hard work will be rewarded by that graduation toga. If we don’t persevere we won’t be able to graduate, it’s the same for investing: if we don’t persevere to learn investing, we won’t become successful investors.
Why do we have to learn complex mathematical computations when we don't really need it in real life?
Have you ever had times in college or high school where you thought, how can learning the surface area or the limit of x be useful in everyday life? Unless you are an engineer, college math may not be as useful in real life at all. But the act of practicing how to solve complex math problems doesn't just enhance our problem-solving skills, but also helps us realize that no matter how difficult the problem is, there’s always a solution. Sometimes when we invest, there may be times that we will feel lost. Sometimes the investing formulas, financial statements and financial ratios just don't make sense. If we apply the same patience that we did when we were learning complex problems in school, we can also apply it in learning investing formulas. Be patient and keep learning.
Why we should we participate in physical education and sports, when it's not important in the real world at all?
Do you remember the days when you were studying how to play a sport in elementary or high school or college that when you graduated, you already forgot how to play the sport? Or have you ever had times when you realized that learning sports doesn't improve our financial life at all. Shouldn't it be an optional subject and not mandatory? But if we look at it, physical education not only improves our physical heath, helps us learn new sports, but to teaches us to socialize and cooperate. In life and in business, intelligence does not always mean financial success. Sometimes relational and emotional success can also spill the difference between successful people and failures. In physical education and in sports, we learn the value of cooperation and team work. In business and investing, we also need to seek out friends and mentors who can help us and guide us to be successful investors.
As investors, we care for our future and the future of our family. We invest to generate passive income to reach our financial goals. We also invest to avoid financial risks such as being disable or getting sick so that we will not be a burden to our family.
Investing may be difficult at first. But the investor that never gives up on learning will eventually win. It allows us to assess whether our goals are really important to us or not. Investing allows us to identify our values in life. Are we persistent, patient and do we seek mentors? Should we quit or should we hold on to our goals? Should we lower our goal because of challenges or should we rise up and set higher goals?
There are a lot more values we can obtain when we invest. But the bottom line is that investing makes us a better person. It allows us to help our family, our economy and also to become a better you. So, the next time you invest, think not only of the financial benefits of investing but also its non-financial benefits.
If you wish to learn how to invest, feel free to contact me or contact FinancePH at 0905-FINANCE.
Did you know that less than 1% of Filipinos are investing and actively participating in STOCK MARKET?
Why there’s only few?
The main two reasons why is that we normally:
Most Filipinos are natural hard workers. They know how hard it is to earn money. That is why most Filipinos have a stronger emotion when it comes to losing money than when it comes to earning money. They would rather put their money on something that is safe such as the bank than put it on something that would earn more such as the stock market, but has no certainty.
Most Filipinos tend to look at the immediate outcome that it wouldn’t work without even thinking about the process on how the money is used to earn more money. Again, this is the result of the two reasons stated above.
What is the STOCK MARKET?
It is simply where the stock/shares are bought and sold. Stocks change in value everyday depending on how the investors view the company representing stock. If the investors perceive that the company has good strategies for the future and that they believe that the company will earn in the future, the stock price will most likely rise because there will be more buyers than sellers. The opposite is also true.
MOST PEOPLE SAY:
Did you know that you can start being a stock investor by just knowing the basics of investing in the stock market?
Did you know that investing in the stock market is not as hard as you think but will be very rewarding if you invest in it?
So, what are the benefits of investing in the stock market?
Here are some benefits that you can obtain when investing in stock market:
So how do I start investing then?
The very first thing to do is to learn the basics on how the stock market works. There are so many articles, blogs, seminars, and webinars on how to invest in stocks. You may also check FinancePH’s seminar on how to invest in the Philippines Stock Market by visiting www.financeph.com/seminars.
“WE MUST PUT AN EFFORT TO LEARN FOR US TO UNDERSTAND THE BASIC OF INVESTING IN STOCKS”
Second, if you already know the basics, you have to determine if you are a long-term investor or a short-term trader. For beginners, I suggest you go long-term. This is also true if you are busy on your job and just want to have your money work with minimal effort.
Is there any way to invest without so much effort?
You want to invest but you are too busy to learn these things by yourself.
I recommend talking to a financial advisor since they can give you options on how to invest in managed funds. As the term implies, you will not be directly selecting and managing the stocks but you will leave it in the hands of professional fund managers who will be the one to make your money grow in the stock market.
Talking to financial advisors may also allow you to learn the basics of investing in the stock market and would allow you to ask questions. After all, it would be much easier and safer to go in the stock market if you have a financial advisor guiding your way.
“NOW THAT YOU ARE INFORMED ABOUT STOCK MARKET, ARE YOU READY TO JOIN THE 1% AND BE CALLED AS A STOCK INVESTOR OR A TRADER?”
Adult life is like sailing on the ocean. A vast array and breadth of wonderful opportunities vis a vis the adventure story you’ll create makes it full with excitement especially for the possible things that we can do. Yet, we do know that this same feeling may also turn into sorrow easily as storms keep on passing by.
That is why we probably opt not to sail on the ocean of life too far by taking things slowly like still living with or near our parents, until we feel confident about our savings. Or perhaps we are the aggressive type: living wild and free, sailing wherever the wind takes us. Nonetheless, whatever we do, having a Variable Life Insurance should be one of the things we must have to attain a better future, and here are the five reasons why:
As they say, Y.O.L.O! So what are you waiting for? Try to contact a financial advisor now and let them help you start sailing in the ocean of life confidently!
What are stocks, bonds, mutual funds? What are GDPs and GNPs? If you do not know these terms, then maybe you need to start investing in financial literacy. In this article, we will discuss what is financial literacy and its importance in our financial lives.
In my opinion, financial literacy is the acquisition of financial knowledge to improve one's financial health. This may mean acquiring knowledge on how to manage your earnings to save for the future. This may also mean learning different financial jargons so you can make better financial decisions.
Have you ever wondered why there are so many hard-working people that end up having no savings at all? It is because they lack financial literacy. Some only know how to save in banks but they don’t know that there are more methods which give more returns than a bank.
As we broaden our knowledge about financial literacy we get to encounter more terms, methods, and techniques to help us make better decisions for our future. If applied properly, it will help us improve the way we spend, save, protect and invest our money.
I know of people who have high paying jobs but have low financial literacy. In my opinion, in 5 to 10 years’ time they will still be working on the same job and will not have any savings at all because they did not invest in financial literacy. These is because some people make the wrong financial choices, like upgrading their lifestyle quickly when they receive salary increases.
Some people have bank savings which is good, but having financial literacy will allow you to have direction in your savings. Like saving for an emergency fund, educational fund or retirement. But more than that, saving in a bank doesn’t really give you that much returns right? If you improve your financial knowledge you will be able to invest in stocks, bonds, insurance policies, managed funds and other investment vehicle which will give higher returns that will be very beneficial for you in the future.
ALWAYS REMEMBER It’s not about how much you earn but how much you keep”
The more we invest in financial literacy, the better will be the quality of the decisions we can make for ourselves and for our family.
“An Investment in knowledge pays the best Interest”
Every time we invest there will always be a risk involved. There is no such thing as zero risk, even when we go out to work, there is always a possibility that we can get into an accident.
Some people say that investing is like gambling. Actually its not. It's because gambling is wagering something of value with an uncertain outcome. In investing we expect to earn something and the probability of earning is usually higher than the probably of losing.
In order to understand risk, we must first define it.
Risk is the potential of gaining or losing something of value. The higher the risk the higher the should be your expected return. This means that if you want to invest in a business, you should expect for a higher return than if you just invest in the bank. However, sometimes even when the risk is high, the actual return may not be equal to what you expect the return to be. This is because of the different risks in investing.
So what are the risks to consider when investing?
Protect your income as early as now. Talk to a FinancePH advisor so you can come up with a good financial plan - whether retirement, educational planning for your children, estate planning and travel or business planning.
On June 1, it was reported that the Securities and Exchange Commission (SEC) has come up with a draft memorandum circular for the increase in the public float of Philippine-listed companies. But, what is a public float? And what does this entail? Allow me to explain.
A float denotes the shares of a company which are freely bought and sold to the public. These are regular shares that companies issue to the public which in turn are available to be traded by investors. A company will usually identify their float by deducting their restricted stocks, which are shares that cannot be bought or sold absent a special permission from the SEC and are usually issued only to executives and directors, from their outstanding shares or shares that the company has actually issued.
However, a company must first know how much shares they are capable of issuing or how much authorized shares they have. To further understand these let’s take as an example Company QRS which has 1000 shares to be issued. The Company decides to hold an IPO (initial public offering) offering 200 shares and while at the same time providing another 200 shares to its executives.
In the example, the company has a total of 1000 authorized shares and 400 outstanding shares. The 200 shares they provided to their executives are the company’s restricted shares. Now, if we deduct the said 200 restricted shares from the 400 outstanding shares, we will get 200 shares of the company as the float which was offered in the IPO.
From this illustration, we can infer that a float is a very important number. It is how an investor in the stock market will know how many shares are actually available to be sold and bought by the general investing public.
Now that we have an idea what public float really means, this news about its planned increase is really a great opportunity. The SEC said that the memorandum circular, once approved, would hike the current public float from 10% to 20%.
The measure, in particular, will make “those planning to list their shares for the first time to comply immediately with a 20% minimum public ownership requirement, while those already listed will be required to increase their public float to at least 15% on or before the end of 2018, and then to at least 20% on or before the end of 2020.”
Therefore, this wonderful chance allows us investors to be able to buy more shares in the stock market. What’s even better is that the SEC is eyeing for it to start on the month of July! So, what are you waiting for? You better save up and be ready to buy more shares!
Have you ever been so committed in doing something, yet you fail to comply? Like, you really wanted to lose some weight, but it was really hard for you to do? Or, like me you are not allowed to eat some foods because you have an allergy, but there are times that you just can't resist? Or in finances, you really want to save but every time you pass by the mall there seems to be a force that compels you to buy that shoes or that bag? In all of these circumstances, will power doesn't seem enough. Any remedy? It's accountability.
Just think about this, wouldn't it be easier to lose weight, if there is someone who is watching over your diet? Wouldn't it also be easier for you to resist the temptation of eating foods that you are allergic with, if there's someone who monitors the food that you eat? The same way goes for finances. Wouldn't it be easier for you to save if there is someone who looks at your expenses? You might be thinking, so maybe I need a guard. I would say, no! Not a guard but an accountability partner.
Let us first define what accountability means. According to Merriam-Webster dictionary, it is an obligation or willingness to accept responsibility or to account for one's actions. With this, let us talk about how
accountability works in finance. The following are the steps that you can take:
1. Acceptance. First thing you have to establish is to accept that you are in need. No one gets treatment
without acknowledging that there is something wrong.
2. Openness. Once you have accepted that you are in need, you have to be open to the idea of having an
accountable partner. Trust me, without such it is very difficult to manage your finances.
3. Power of "why". Establish the reason why you want your finances to be in the right place. Without these, it will be easy to be swayed from left to right.
4. Find a partner. How will you know if he is the right one? If he is trustworthy and honest, then I believe he
fits to be your accountable partner. But, there are two more things you have to consider. First, is that he
should be knowledgeable in terms of finances. Second, you know that he lives by example.
5. Openness. Be open to your partner. Tell him everything that concerns your finances. This will include your goals, your apprehensions, your spending habits and most importantly your compelling 'why' as discussed in step no. 3. This is the reason why your accountable partner should be trustworthy. Oftentimes, working with your accountable partner would demand that you disclose confidential information. So you have to make sure that the person you are talking to is worthy of your trust. Trust can be established through his reputation, his character and beliefs and his dedication to help you.
6. Acceptance. Lastly, accountability in finance is of no use if you will not accept and implement the advice of your partner. The best advice is the advice put in practice. Trusting that person would mean that you are
willing to accept his opinions and suggestions.
These steps are just guides on how to manage your finances. Its success is dependent on your implementation. Best result is achieved through proper and consistent implementation. If you need help or if you have questions you may call us at 0905-FINANCE (0905-3462623).
Having a travel insurance when you travel especially abroad is very important. The costs of inpatient confinement and even outpatient consultations are very huge.
There was a time I went to Dubai for a vacation, when I arrived I suddenly got some terrible rashes. At that time there was some sort of virus around the globe. I think it was MERS. My friends who traveled with me were so scared, they avoided me. And that was the time I knew who my real friends were. Just kidding. 😆
Anyway, to stop the scare and speculation among my friends I finally decided to have some outpatient check up. I tried to find a Filipino clinic, thinking that the Filipinos there would be friendly and would offer an affordable price.
Unfortnately the opposite was true, the Filipinos who treated me were milking money from me saying that it may be a case of a virus. They said I do several tests which I think were unnecessary. In total I spent close to P20,000. They even scheduled me for another follow up consultation and for the test results.
But the night after the consultation, my rashes slowly disappeared. And the scare that the Filipino doctors and nurses were telling me were not at all true. It was just a case of some allergy I did not know I had.
From that day on, I promised to get a travel insurance everytime I travel. What is a few hundred pesos versus the cost of hospitalization abroad? Further, since I am a financial advisor and insurance agent, I belive it is my duty to walk the talk. I should also be travel insured.
So, I searched the net for the most affordable and good service travel insurance company. In my opinion the best travel insurance is the one below:
If you need assistance in getting a travel insurance or need more information. Feel free to contact me or any of my financial advisors. We will be glad to help you. You may contact us through our talk to a financial advisor hotline at 0905-FINANCE or 0905-3462623 or visit www.insuranceph.com.
Here's a picture of me and some my good friends after the rashes went off. This was taken at Atlantis, Palm Islands in Dubai.
Have you ever wanted to create a tutorial video where you can record your PC screen and voice over? Then this app is a must have for you. The name of the App is LOOM. You can download this app by clicking here.
So how do I use this in my business? I personally use it to create video tutorials for my employees. I also use it to communicate with some of my outsourced employees.
Try it now. Download the app for windows and mac for free here.
BDO Closure Tax Scandal: Mayor Goes to Social Media About The Real Reason Why BDO Jones Branch Had To Be Closed
Banco de Oro again went on fire after Cebu City Mayor Tommy Osmena posted in his official Facebook Page a post stating that BDO Branch in Jones only paid 35 pesos in taxes for 2015. In his post, he said that employees get their taxes automatically deducted from their wages while their bosses perform magic first. BDO: "We Find Ways". Here is a screenshot of the post:
Netizens reacted to the post. Some were positive, some were negative. But some were just wondering why the BIR did not notice this anomaly in the first place. Here is the answer of the Mayor:
A netizens asked the Mayor how to win the fight against these kinds of people. Here is what the Mayor answered:
It is quite embarrassing that the post has since then went viral and has caught the attention of a person from the United Kingdom saying that in their country the House of Commons (Congressmen) will create a committee to investigate before TV Cameras. The Mayor replied by saying "Welcome to the Philippines where a Mayor has to post about it in Facebook before the media gives the issue any attention". See the post below:
In one of the Mayor's comments in the post, he said that "BDO just opened their 1000th branch. Multiply this foolishness by 1000 and you will what kind of peope I'm fighting against. I expect a long and hard fight. But I will win. I have to win."
In one post, a certain netizen criticized the Mayor for trial by publicity. He said that the Mayor should file a case through the courts and not through social media in order to protect the Mayor's Honor. The Mayor then replied saying "So I continue to let the obviously unbiased media say whatever they like about the issue and not let people hear from the person who discovered the issue in the first place? With all due respect, don't lecture me about "honor." You don't want to know how much I was offered to shut up." See the post below.
Some netizes argued that it's not BDOs fault, but a loophole in the system. The Mayor then replied by saying "Watch Me."
Well I guess with all the influence, the legal and financial power of BDO, the Mayor will really be having a hard time resolving this issue. Right now its the Mayor of Cebu versus BDO. We're excited to know more about the developments of the story. As for now, its time for the court and the judges to decide on this issue because as they say, you are innocent until proven guilty.
Life is not only short but also unpredictable.
Life’s unpredictability compels parents to train their children how to live life fully. And the best legacy that parents can give to their children is knowledge. From the time children learn how to identify shapes and colors, to the time they go through heartbreaks in their teens, to the time they struggle with their own families in adulthood, children have their parents to lean on.
Parents are in truth coaches who try to adapt their style of training their team players. While their young minds are still malleable, parents will try to enforce strict discipline in survival training for their children that includes the proper way of eating, sleeping, studying, playing, praying and even saving, borrowing, insuring and investing. This is the period where the foundation of a child’s unique personality is developed.
It is never too early to teach children about money, a most powerful tool like Thor’s mighty hammer, Captain America’s shield and Ironman’s suit that they will be using throughout their life. In fact, the main lesson here is to teach children that money is nothing but a tool, not a goal itself. And not to steal the thunder from parents, but the straightforward lessons when it comes to money are to live simply, borrow responsibly, insure adequately and invest wisely.
Parents need not reinvent the wheel for there are financial securities out there that can help with teaching children how to best use money as a tool for better future. Parents can directly access money market instruments, bonds and stocks. Better yet, with the help of value for money experts, parents can indirectly tap into these instruments through professionally managed funds.
Children’s unique personality will be under attack in their teen years when conformity appears to be cooler than being unique (i.e. not unless a child becomes the leader and trendsetter for his or her group). At this point, parents will need to ease up on the throttle of discipline and become as cool as their children’s friends by allowing their children to enjoy the responsible use of freedom. It is when parents become unbending that children begin to rebel and interpret parents’ instruction of “don’t, stop” as “don’t stop”.
As children set out to create their own families, parents once again need to rebalance their role to one of cheering squad. Like in basketball, parents become the sixth team player, actively rooting for their children’s team from a distance in life’s bleachers; egging them on to strive for success even in the face of failure and celebrating with them with each winning moment. Parents can likewise face frustration here when their children make mistakes that could have easily been avoided. But parents need to understand that they too went through the same errors, that they only know better because they now possess the wisdom that only years of experience can forge. Sometimes, experience is the better teacher.
Life is short and unpredictable. That is why seeing children graduate from college and head out into the world on their own is already a blessing.
If you are a parent, cherish every moment with your children; for who knows what tomorrow will bring.
We, your FinancePH advisors, will be glad and more than willing to help you plan your finances. Our customized financial planning approach caters to each individual needs, budgets and priorities.
If you wish to do a financial consultation with a FinancePH advisor or want to request a proposal/quote just click here.We will assign you to the best available advisor near your area.
(Originally written by Efren Ll. Cruz, RFP at http://www.savingstips.com.ph)
Certified True and Correct from Source: http://www.insurance.gov.ph/_@dmin/upload/statistics/Networth%20of%20Life%20Ins.%20Cos._Year%202016.pdf
Above is the list of the top best life insurance companies in the Philippines for 2017. The Insurance commission releases the top life insurance companies ranking data every year.
The best and largest top companies in the country have high net worth. A higher net worth means that the company can be able to survive financial crises because it has sufficient assets to operate should the company have years of continued losses.
The ranking above shows that the top 3 life insurance companies for 2017 are Phil-Am Life, Insular Life and Sun Life. Since the 2016 just ended the results is for the Latest Top Life Insurance Companies in the Philippines for 2017 is based on company results ending 2016.
Despite being 100% Filipino owned, Insular Life's ranks among the top life insurance companies. If you would like to get life insurance consider Filipino companies because supporting a local company would translate to greater benefits for our country. Just look at what happened to South Korea when its citizens patronized local brands such as Samsung and Hyundai.
If you want to invest in Insular Life products and services, we the financial advisors of FinancePH are more than willing to assist you in finding the right Life Insurance, Health Insurance, Retirement Plan, Education Plan for you. Request for a free Insular Life proposal online by clicking here. We will then assign you the best financial advisor based on your needs and location.
To view all the financial advisors of FinancePH simply click here.
ABOUT THE AUTHOR:
Mark Joseph T. Fernandez, CPA, RFC, AFA, AWP, AEP, MDRT is the founder and head financial advisor of FinancePH. He has helped thousands of people start saving, investing and insuring. He conducts regular monthly seminars and is a regular TV and radio guest on finance topics. Reach him at email@example.com.
FinancePH is an advocacy group founded in 2014 by a group of financial advisors.
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